# Chapter 8 example #67451

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The labor force is
the total of people employed and unemployed.
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The unemployment rate is:
the percent of the labor force that is unemployed.
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To be counted as unemployed, one must:
be out of work and be actively looking for a job.
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If a country has a working-age population of 200 million, 135 million people with jobs, and 15 million people unemployed and seeking employment, then its unemployment rate is:
10%.
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If a country has a working-age population of 200 million, 135 million people with jobs, and 15 million people unemployed and seeking employment, then its labor force is:
150 million.
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Which of the following statements is true?
The labor force is the total number of people working plus those who are unemployed.
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A person who is not working and is not looking for work is:
not counted in the unemployment statistics.
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You are a college student and not working or looking for work. You are:
not part of the labor force.
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A survey reveals that on a small island initially 100 people have jobs, 25 people are looking for jobs, and 45 people are neither working nor looking for work. Suppose that 15 of the 45 people who weren't looking for work now begin looking for work. There are now 40 people looking for work and 100 people working. What happens to the unemployment rate?
It rises to 28.6%.
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If the rate of unemployment is 10% and the labor force is 130 million, the number of unemployed workers is:
13 million.
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If a country has a working-age population of 200 million, 135 million people with jobs, 10 million people who were looking for a job but have given up, and 5 million people unemployed and seeking employment, then its labor force is:
140 million.
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The official unemployment rate reported by the government may tend to understate the amount of unemployment because it:
excludes discouraged workers who are not actively seeking employment.
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When the economy is at full employment:
cyclical unemployment is zero
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In February of 2012, the Bureau of Labor Statistics calculated the unemployment rate to be 8.3%. If frictional unemployment was 2% and structural unemployment was 3.2%, then cyclical unemployment would be:
3.1%.
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If money income remains the same while the average price level doubles, then:
real income will fall.
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Increases in the average level of prices are called:
inflation.
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(Table: The Consumer Price Index (CPI)) According to the accompanying table, the consumer price index in 2009 was 212.2. In 2010, it was 216.7. What was the rate of inflation from 2009 to 2010?